Russia officially extends repayment deadline period for railway loan until 2021 – Serbia paying 1% interest rate on undrawn amounts

Russia has extended the repayment deadline period for the loan for modernizing the Serbian railway, approved in 2013, until 2021, it was reported on the official Russian legal information portal.

The document says that the governments of Russia and Serbia, “in order to further develop and strengthen friendly relations between the two countries and develop the mutually beneficial cooperation”, had agreed that the Serbian side could utilize the loan until 2021.

Russia and Serbia signed an agreement on an export loan worth USD 800 million for modernizing the Serbian railway in 2013 in Moscow. The document was signed by Minister of Finance Anton Siluanov, on behalf of the Russian party, and the then Minister of Finance of Economy Mladjan Dinkic, on behalf of the Serbian party.

It was reported at the time that the repayment deadline period was five years with an annual interest rate of 4.1%.

According to Moscow's latest decision, Serbia should repay, by March 15, 2018, the fee of 1% on the undrawn amounts on the date of December 31, 2017. Furthermore, Serbia should pay the same fee on undrawn amounts on the date of December 31, 2021, by March 15, 2022.

Vlada Republike Srbije

Železnice Srbije a.d. Beograd

Vlada Ruske Federacije

loan for modernizing Serbian railway

modernization of Serbian railway

Government of Russia

Anton Siluanov

Mladjan Dinkic

railway renovation

Russian railway loan